Introducing changes to Deribit’s Portfolio Margin Model
We are keen to announce the launch of various changes to our portfolio margin model as of tomorrow 5 March 9 AM UTC.
Going forwards we will have two versions available and any client can choose the preferred setup:
🔹Segregated Portfolio Margin (guide)
🔹Cross Collateral (Portfolio Margin) - coming in April ‘24
Tomorrow we will launch Segregated Portfolio Margin (Segregated PM), marking the first of multiple significant new risk enhancements to our trading platform.
⚠️The main difference between Segregated PM and multi currency Cross Collateral, is the treatment of currencies on a segregated basis or in aggregate. All other features mentioned below will apply to both Segregated PM and Cross Collateral.
Clients can choose to switch from Legacy PM to the new Segregated PM model (so its not mandatory). However switching margin model back to Legacy PM will no longer be possible. The margin impact of the switch will be shown before the switch to segregated PM is confirmed. Switching will never lead to liquidations.
Key Changes to the New Portfolio Margin Model:
Balance reflective: Our new model recognizes the unique risks of unbalanced positions (for example portfolios skewed towards price increase or decline, position size, basis etc) by margining these higher, while offering reduced margin requirements for well-balanced positions.
Improved IM accuracy: The new model calculates initial margins more precisely (instead of 1.2*MM) ensuring long options are not over-collateralized. This means traders can utilize their capital more effectively, without the burden of excessive collateral.
Comprehensive Market Move Analysis: The new model adopts a broader view of potential market movements, assessing fractions of much larger price moves. Margin requirements are adjusted only when the projected loss is substantial, which aligns margin requirements more closely with actual risk.
Removal Short Vega Limit Cap: Reflecting our improved approach to market move analysis, New PM accounts will not have a short vega limit cap imposed. The hard cap is no longer needed as the new model takes moves of -66% to +500% into account (in addition to -16% to +16% for BTC and ETH subject to change) and automatically charges additional margin accordingly.
Removal of Option Contingency: New PM accounts will not have an additional option contingency because of the enlarged scenario range in the extended risk matrix.
Removal of Futures Contingency: By replacing future contingency with a delta and roll shock-based method, our model adopts a more nuanced, risk-sensitive approach to futures margining, whilst including the options delta here.
Upcoming Enhancements:
Looking forward, we are excited to share that our short-term roadmap includes the introduction of collateral offset for USDC-settled altcoin options when holding the underlying coin (date to be confirmed), and the launch of full multi currency cross-collateral capabilities in April.
These enhancements are part of our ongoing commitment to providing our clients with the most advanced, flexible, and efficient trading suite in the market.
We believe these changes will significantly benefit our users by providing more accurate, risk-aligned margin requirements, enabling greater trading flexibility and efficiency. Stay tuned for further updates as we continue to enhance our platform to meet and exceed the needs of our trading community.
More info in the elaborate Segregated PM Guide.
We are keen to announce the launch of various changes to our portfolio margin model as of tomorrow 5 March 9 AM UTC.
Going forwards we will have two versions available and any client can choose the preferred setup:
🔹Segregated Portfolio Margin (guide)
🔹Cross Collateral (Portfolio Margin) - coming in April ‘24
Tomorrow we will launch Segregated Portfolio Margin (Segregated PM), marking the first of multiple significant new risk enhancements to our trading platform.
⚠️The main difference between Segregated PM and multi currency Cross Collateral, is the treatment of currencies on a segregated basis or in aggregate. All other features mentioned below will apply to both Segregated PM and Cross Collateral.
Clients can choose to switch from Legacy PM to the new Segregated PM model (so its not mandatory). However switching margin model back to Legacy PM will no longer be possible. The margin impact of the switch will be shown before the switch to segregated PM is confirmed. Switching will never lead to liquidations.
Key Changes to the New Portfolio Margin Model:
Balance reflective: Our new model recognizes the unique risks of unbalanced positions (for example portfolios skewed towards price increase or decline, position size, basis etc) by margining these higher, while offering reduced margin requirements for well-balanced positions.
Improved IM accuracy: The new model calculates initial margins more precisely (instead of 1.2*MM) ensuring long options are not over-collateralized. This means traders can utilize their capital more effectively, without the burden of excessive collateral.
Comprehensive Market Move Analysis: The new model adopts a broader view of potential market movements, assessing fractions of much larger price moves. Margin requirements are adjusted only when the projected loss is substantial, which aligns margin requirements more closely with actual risk.
Removal Short Vega Limit Cap: Reflecting our improved approach to market move analysis, New PM accounts will not have a short vega limit cap imposed. The hard cap is no longer needed as the new model takes moves of -66% to +500% into account (in addition to -16% to +16% for BTC and ETH subject to change) and automatically charges additional margin accordingly.
Removal of Option Contingency: New PM accounts will not have an additional option contingency because of the enlarged scenario range in the extended risk matrix.
Removal of Futures Contingency: By replacing future contingency with a delta and roll shock-based method, our model adopts a more nuanced, risk-sensitive approach to futures margining, whilst including the options delta here.
Upcoming Enhancements:
Looking forward, we are excited to share that our short-term roadmap includes the introduction of collateral offset for USDC-settled altcoin options when holding the underlying coin (date to be confirmed), and the launch of full multi currency cross-collateral capabilities in April.
These enhancements are part of our ongoing commitment to providing our clients with the most advanced, flexible, and efficient trading suite in the market.
We believe these changes will significantly benefit our users by providing more accurate, risk-aligned margin requirements, enabling greater trading flexibility and efficiency. Stay tuned for further updates as we continue to enhance our platform to meet and exceed the needs of our trading community.
More info in the elaborate Segregated PM Guide.
⚠️5 March Scheduled Maintenance is postponed to Saturday 9 March 2024 ⚠️
Volatility and overall market activity is currently too high to take the platform offline for the scheduled release.
For that reason the release will be postponed to this Saturday 9 AM UTC.
Updated timing Segregated OM and USDC-settled altcoin options
As a result the launch of the new Segregated Portfolio Model will be postponed to Saturday as well and the launch of Solana options to Monday 11 March 8 AM UTC.
XRP and Matic options will be launched Tuesday 12 March 8 AM.
Volatility and overall market activity is currently too high to take the platform offline for the scheduled release.
For that reason the release will be postponed to this Saturday 9 AM UTC.
Updated timing Segregated OM and USDC-settled altcoin options
As a result the launch of the new Segregated Portfolio Model will be postponed to Saturday as well and the launch of Solana options to Monday 11 March 8 AM UTC.
XRP and Matic options will be launched Tuesday 12 March 8 AM.
1️⃣ MAINTENANCE UPDATE
The platform is now locked because admin is performing scheduled maintenance as announced earlier.
Expected duration is up to 30 mins.
👉 Release notes
👉 Launch of new Portfolio MNargin Model (opt in)
The platform is now locked because admin is performing scheduled maintenance as announced earlier.
Expected duration is up to 30 mins.
👉 Release notes
👉 Launch of new Portfolio MNargin Model (opt in)
Deribit
Crypto Futures and Options Exchange - Deribit
World's biggest Bitcoin and Ethereum Options Exchange and the most advanced crypto derivatives trading platform with up to 50x leverage on Crypto Futures and Perps.
2️⃣ MAINTENANCE UPDATE
Deribit platform is back online, orders can be cancelled only, after final checks platform will go live for trading.
Deribit platform is back online, orders can be cancelled only, after final checks platform will go live for trading.
3️⃣ MAINTENANCE UPDATE
Trading has resumed again. Thanks for your support!
Trading has resumed again. Thanks for your support!
🚀🚀 Solana options have launched 🚀🚀
Options trading in the first new altcoin underlying SOLANA has commenced on Deribit. MATIC and XRP options trading will start tomorrow 8 AM UTC.
Real-time prices can be found here
Please read everything you need to know about Altcoin options in our Insights blog + explanatory video.
Other useful information:
New Portfolio Margin Model
Options trading in the first new altcoin underlying SOLANA has commenced on Deribit. MATIC and XRP options trading will start tomorrow 8 AM UTC.
Real-time prices can be found here
Please read everything you need to know about Altcoin options in our Insights blog + explanatory video.
Other useful information:
New Portfolio Margin Model
🚀🚀 MATIC and XRP options now live as well🚀🚀
Real-time prices can be found here: MATIC and XRP.
Please read everything you need to know about Altcoin options in our Insights blog + explanatory video.
Other useful information:
New Portfolio Margin Model
Real-time prices can be found here: MATIC and XRP.
Please read everything you need to know about Altcoin options in our Insights blog + explanatory video.
Other useful information:
New Portfolio Margin Model
Annual Penetration Test results 2024
Deribit has once again successfully completed the annual penetration test performed by cybersecurity firm Secura, a leading and independent expert in digital security, a Netherlands-based company established in 2000. The report from Secura confirms that Deribit's security measures are effective and up to date, ensuring the protection of our users' data and assets. The results of this test indicate that the Deribit platform has followed through on its commitment to providing a secure and transparent trading environment for users.
In the penetration test, Secura found no critical or high or medium-risk flaws in Deribit’s security infrastructure. The minor issues found by Secura have been addressed to meet Secura’s and our standards. Should clients require a copy of the report for due diligence purposes we can provide one, please send a request to support@deribit.com.
⛨ Annual Penetration Test
⛨ ISO 27001
⛨ SOC2
Thank you for your trust in Deribit.
Deribit has once again successfully completed the annual penetration test performed by cybersecurity firm Secura, a leading and independent expert in digital security, a Netherlands-based company established in 2000. The report from Secura confirms that Deribit's security measures are effective and up to date, ensuring the protection of our users' data and assets. The results of this test indicate that the Deribit platform has followed through on its commitment to providing a secure and transparent trading environment for users.
In the penetration test, Secura found no critical or high or medium-risk flaws in Deribit’s security infrastructure. The minor issues found by Secura have been addressed to meet Secura’s and our standards. Should clients require a copy of the report for due diligence purposes we can provide one, please send a request to support@deribit.com.
⛨ Annual Penetration Test
⛨ ISO 27001
⛨ SOC2
Thank you for your trust in Deribit.
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🔥 Exciting News: Introducing Shareable PnL (Profit & Loss) Cards! 🔥
Whether you're riding the highs of success or navigating the lows of setbacks, your trading journey is unique and worth sharing.
Straight from the Dashboard Position Table—just click the share icon to generate the card for your specific trade.
Share your PnL card on Social Media, Telegram, WhatsApp etc or save it as a precious memory.
Whether you're riding the highs of success or navigating the lows of setbacks, your trading journey is unique and worth sharing.
Straight from the Dashboard Position Table—just click the share icon to generate the card for your specific trade.
Share your PnL card on Social Media, Telegram, WhatsApp etc or save it as a precious memory.
Launch of Conditional Orders - OTO - OCO - OTOCO
A conditional order is an order whose behaviour is conditional on what happens to another order.
Conditional orders are available as of now in the UI, and via the API. In the UI they can be found in the new order form, which now includes two toggles. One for a take profit, and one for a stop loss.
👉 One-triggers-other (OTO) - allows a primary order to trigger at least one secondary order upon fulfillment.
Example OTO: Primary order, buy 1 BTC at underlying price of USD 70k and only when this order os executed, enter a limit sell at USD 72k
👉 One-cancels-other (OCO) -links two orders such that if one is filled or cancelled, the other is automatically cancelled.
Example OCO: A take profit and a stop loss are entered to sell an existing position; One limit to sell 1 BTC at USD 75k and one stop market sell at USD 69k. Only one needs to be executed, so when either is triggered, the other one is cancelled.
👉 One-triggers-one-cancels-other (OTOCO) - combines OTO and OCO, linking a primary order to two secondary orders (a take profit and a stop loss) with the feature that if one secondary order is filled, the other is cancelled.
Example OTOCO: Primary to buy 1 BTC at USD 70k and once executed a take profit sell at USD 72k as well as a stop loss at USD 68k is entered. If one of the two is executed, the other is cancelled.
OTOCO orders are a powerful way to link the triggering or canceling of an order conditional on a limit order.
Explanatory Insights Article & Video
A conditional order is an order whose behaviour is conditional on what happens to another order.
Conditional orders are available as of now in the UI, and via the API. In the UI they can be found in the new order form, which now includes two toggles. One for a take profit, and one for a stop loss.
👉 One-triggers-other (OTO) - allows a primary order to trigger at least one secondary order upon fulfillment.
Example OTO: Primary order, buy 1 BTC at underlying price of USD 70k and only when this order os executed, enter a limit sell at USD 72k
👉 One-cancels-other (OCO) -links two orders such that if one is filled or cancelled, the other is automatically cancelled.
Example OCO: A take profit and a stop loss are entered to sell an existing position; One limit to sell 1 BTC at USD 75k and one stop market sell at USD 69k. Only one needs to be executed, so when either is triggered, the other one is cancelled.
👉 One-triggers-one-cancels-other (OTOCO) - combines OTO and OCO, linking a primary order to two secondary orders (a take profit and a stop loss) with the feature that if one secondary order is filled, the other is cancelled.
Example OTOCO: Primary to buy 1 BTC at USD 70k and once executed a take profit sell at USD 72k as well as a stop loss at USD 68k is entered. If one of the two is executed, the other is cancelled.
OTOCO orders are a powerful way to link the triggering or canceling of an order conditional on a limit order.
Explanatory Insights Article & Video
Deribit test environment maintenance
Deribit is moving the test environment from Zurich ZH4 to London LD4. Maintenance will commence 20 March 2024 12 UTC. Moving can result in up to one hour downtime of our test environment and possibly smaller issues over the following days.
Besides temporary downtime, the move will not impact clients.
Even though based in the same datacenter as our production environment, we will not allow direct connections / colo / cross connects of any kind to our test environment.
The test.deribit.com address will not change.
Deribit is moving the test environment from Zurich ZH4 to London LD4. Maintenance will commence 20 March 2024 12 UTC. Moving can result in up to one hour downtime of our test environment and possibly smaller issues over the following days.
Besides temporary downtime, the move will not impact clients.
Even though based in the same datacenter as our production environment, we will not allow direct connections / colo / cross connects of any kind to our test environment.
The test.deribit.com address will not change.
Spot BTC and ETH tick size increase
On Tuesday 2 April 2024 9 AM UTC Deribit will implement changes to the tick sizes for BTC and ETH spot pairs for both on-screen orderbooks and block trades.
The change will impact the following spot pairs:
🎖 BTC / USDC increased from 0.01 to 1 USDC
🎖 BTC / USDT increased from 0.01 to 1 USDT
🎖 ETH / USDC increased from 0.01 to 0.1 USDC
🎖 ETH / USDT increased from 0.01 to 0.1 USDT
Tick size, the minimum increment by which the price of orders can change, is a crucial element in trading. Deribit is implementing this change to improve the tradability of these pairs and generate more volume on increased ticks. New orders at smaller tick sizes will be rejected as of 2 April 2024 9 AM UTC.
Please note that this change will apply to all new & existing orders but will not affect existing positions.
Important to note:
🎖 Orders entered before the change that are not compatible with the new tick size would remain in the book but be displayed in the public order book (via API and UI) rounded down to nearest tick for bids and rounded up to nearest tick for asks. However if a trade matches with that price, it will go through on the originally entered price of the order.
🎖 For example, having a bid of 6800.12 and ask of 6803.16 on an ETH / USDC Spot would be adjusted to 6800.1 and ask of 6803.2. But if a sell order for 6800.1 comes in, it would match at 6800.12
🎖 Orders not compatible with the new tick size won't show the triangle in UI to signal it is your order. It would still be seen in your open orders (API and UI)
🎖 Stop orders entered that are not compatible with the new tick size will be rejected when triggered (will show as rejected:server_error in the Trigger Orders Log). So please be sure to edit or re-enter these
🎖 Editing only volume on orders that are not compatible with new tick size
On Tuesday 2 April 2024 9 AM UTC Deribit will implement changes to the tick sizes for BTC and ETH spot pairs for both on-screen orderbooks and block trades.
The change will impact the following spot pairs:
Tick size, the minimum increment by which the price of orders can change, is a crucial element in trading. Deribit is implementing this change to improve the tradability of these pairs and generate more volume on increased ticks. New orders at smaller tick sizes will be rejected as of 2 April 2024 9 AM UTC.
Please note that this change will apply to all new & existing orders but will not affect existing positions.
Important to note:
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Deribit to change on screen futures spreads fees
In order to make the futures spreads segment more attractive for takers, the fee rate will be rebalanced as follows:
Current on screen Futures spreads fees: Deribit offers a 50% discount on the cheapest taker leg.
New setup as of 2 April 9 AM UTC
On screen Futures spreads fees: Deribit offers a 100% discount on the cheapest taker leg (❗️second leg will be free) and a 50% maker rebate reduction for the rebate of the combination.
This change does not impact existing block trade fees.
Example:
Client has the following futures fees: -1 bps maker rebate, 3.5 bps taker fee
Current fee for one futures spread execution:
🔹 Maker 2 * - 1 rebate = -2 bps rebate
🔹 Taker 3.5 + 3.5 * 50% = 5.25 bps charge
New fee as of 2 April 2024:
🔹 Maker (-1 -1) * 50% = -1 bps rebate
🔹 Taker 3.5 + 3.5 * 0% = 3.5 bps charge
In order to make the futures spreads segment more attractive for takers, the fee rate will be rebalanced as follows:
Current on screen Futures spreads fees: Deribit offers a 50% discount on the cheapest taker leg.
New setup as of 2 April 9 AM UTC
On screen Futures spreads fees: Deribit offers a 100% discount on the cheapest taker leg (❗️second leg will be free) and a 50% maker rebate reduction for the rebate of the combination.
This change does not impact existing block trade fees.
Example:
Client has the following futures fees: -1 bps maker rebate, 3.5 bps taker fee
Current fee for one futures spread execution:
🔹 Maker 2 * - 1 rebate = -2 bps rebate
🔹 Taker 3.5 + 3.5 * 50% = 5.25 bps charge
New fee as of 2 April 2024:
🔹 Maker (-1 -1) * 50% = -1 bps rebate
🔹 Taker 3.5 + 3.5 * 0% = 3.5 bps charge
Deribit is the first derivatives exchange to receive VARA Regulatory Approval
Deribit FZE, the Dubai entity of Deribit group, the world’s leading crypto options platform, today announced it has received a conditional Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Asset Regulatory Authority (VARA) for VA Exchange Services.
The licence covers both spot and derivatives trading.
Luuk Strijers (Current Chief Commercial Officer) has been appointed as the new CEO of Deribit.
Dennis Dijkstra, Former CEO of Flow Traders, and industry veteran Willem Meijer, will become Non-Executive Directors (NEDs) for Deribit.
Deribit has selected Dubai as its new Headquarters.
Full Press Release
_______________
☑️ SOC2 certified | ☑️ ISO27001 | ☑️ Secura Penetration Tested
Deribit FZE, the Dubai entity of Deribit group, the world’s leading crypto options platform, today announced it has received a conditional Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Asset Regulatory Authority (VARA) for VA Exchange Services.
The licence covers both spot and derivatives trading.
Luuk Strijers (Current Chief Commercial Officer) has been appointed as the new CEO of Deribit.
Dennis Dijkstra, Former CEO of Flow Traders, and industry veteran Willem Meijer, will become Non-Executive Directors (NEDs) for Deribit.
Deribit has selected Dubai as its new Headquarters.
Full Press Release
_______________
☑️ SOC2 certified | ☑️ ISO27001 | ☑️ Secura Penetration Tested
⚠️Unscheduled Maintenance update
Deribit has been experiencing unplanned maintenance since 02:09 UTC.
The platform is not receiving external prices to calculate indices & manage risk. The Platform's primary and secondary sources are having issues. For this reason, the platform is auto-locked.
The Deribit platform can be reached. All assets are secure.
No timing update as of yet.
Apologies for the inconvenience.
Deribit has been experiencing unplanned maintenance since 02:09 UTC.
The platform is not receiving external prices to calculate indices & manage risk. The Platform's primary and secondary sources are having issues. For this reason, the platform is auto-locked.
The Deribit platform can be reached. All assets are secure.
No timing update as of yet.
Apologies for the inconvenience.
⚠️Unscheduled Maintenance update
Deribit platform is back online, orders can be cancelled only, after final checks platform will go live for trading.
Deribit platform is back online, orders can be cancelled only, after final checks platform will go live for trading.
Deribit Integrates with FalconX Prime Connect
Deribit is excited to announce our partnership with FalconX, a reputable digital asset prime brokerage, and the integration of the FalconX Prime Connect, a premier solution for institutional investors to trade on exchanges while ensuring their assets are safeguarded in custody regulated by the Malta Financial Services Authority (MFSA).
When using FalconX Prime Connect, an existing Deribit client would need to become FalconX`s client; onboard with FalconX, complete KYC requirements and start with a new account, open positions cannot be transferred.
Insights article with full explanation of model
Deribit now offers off-exchange custody via:
🎖 Copper Clearloop
🎖 Cobo Loop
🎖 Fireblocks
🎖 FalconX
Please find a description of the differences in this knowledge base article.
Further questions: custody@deribit.com
_______________
☑️ SOC2 certified | ☑️ ISO27001 | ☑️ Secura Penetration Tested
Deribit is excited to announce our partnership with FalconX, a reputable digital asset prime brokerage, and the integration of the FalconX Prime Connect, a premier solution for institutional investors to trade on exchanges while ensuring their assets are safeguarded in custody regulated by the Malta Financial Services Authority (MFSA).
When using FalconX Prime Connect, an existing Deribit client would need to become FalconX`s client; onboard with FalconX, complete KYC requirements and start with a new account, open positions cannot be transferred.
Insights article with full explanation of model
Deribit now offers off-exchange custody via:
Please find a description of the differences in this knowledge base article.
Further questions: custody@deribit.com
_______________
☑️ SOC2 certified | ☑️ ISO27001 | ☑️ Secura Penetration Tested
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